green marketing issues and challenges

7/26/2019 Green Marketing Issues and Challenges

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GREEN MARKETING: ISSUES AND CHALLENGES

Ashu Bhojwani

Research ScholarInstitute of Management Studies

Devi Ahilya Vishwavidyalaya, Indore (M.P.)

Contact No: +919826221000, E-mail: [email protected]

Dr Dee!a "oshi

Associa#e $ro%essor

Department of ManagementShri Vaishnav Institute of e!hnology and Management, Indore (M.P.)

Contact No: +919926048051 E-mail:- [email protected]

ABSTRACT

"reen mar#eting is a phenomenon whi!h has developed parti!ular important in the modern

mar#et. his !on!ept has ena$led for the re%mar#eting and pa!#aging of e&isting produ!ts whi!h

already adhere to su!h guidelines. Additionally, the development of green mar#eting has opened

the door of opportunity for !ompanies to !o%$rand their produ!ts into separate line, lauding the

green%friendliness of some while ignoring that of others. Su!h mar#eting te!hni'ues will $e

e&plained as a dire!t result of movement in the minds of the !onsumer mar#et. As a result of this

$usinesses have in!reased their rate of targeting !onsumers who are !on!erned a$out the

environment. hese same !onsumers through their !on!ern are interested in integrating

environmental issues into their pur!hasing de!isions through their in!orporation into the pro!ess

and !ontent of the mar#eting strategy for whatever produ!t may $e re'uired. his paper dis!usses

how $usinesses have in!reased their rate of targeting green !onsumers, those who are !on!erned

a$out the environment and allow it to affe!t their pur!hasing de!isions. he paper e&amines the

ISBN: 978-93-84898-74-8
mailto:[email protected]:[email protected]:[email protected]:[email protected]


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present trends of green mar#eting in India and des!ri$es the reason why !ompanies are adopting

it and future of green mar#eting and !on!ludes that green mar#eting is something that will

!ontinuously grow in $oth pra!ti!e and demand.

Ke& 'or(s: ) "reen Produ!t, e!y!la$le, nvironmentally safe, !o *riendly.

INTR*DUCTI*N

Maintaining e!ologi!al $alan!e is a ma+or issue !onfronting the !orporate world today. he

damage done to the environment has already !rossed the threshold and rea!hed alarming limits.

on%replenish a$le natural resour!es are getting depleted at a rapid pa!e. "eneration of waste

in!luding $iodegrada$le pollutants is in!reasing enormously. All these negative developments

have for!ed man#ind to thin# more seriously a$out !onserving the environment. "reen

Mar#eting is one su!h initiative towards environment prote!tion, whi!h is gaining popularity.

A!!ording to the A+erican Mar,e#in- Associa#ion. "reen Mar#eting is-%

Re#ailin- De%ini#ion:he mar#eting of produ!ts that are presumed to $e environmentally safe.

Social Mar,e#in- De%ini#ion: he development and mar#eting of produ!ts designed to

minimie negative effe!ts on the physi!al environment or to improve its 'uality.

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En/iron+en#al De%ini#ion: he efforts $y organiations to produ!e, promote, pa!#age, and

re!laim produ!ts in a manner that is sensitive or responsive to e!ologi!al !on!erns.

hus green mar#eting in!orporates a $road range of a!tivities, in!luding produ!t modifi!ation,

!hanges to the produ!tion pro!ess, pa!#aging !hanges as well as modifying advertising.

hus /"reen Mar#eting/ refers to holisti! mar#eting !on!ept wherein the produ!tion, mar#eting

!onsumption an disposal of produ!ts and servi!es happen in a manner that is less detrimental to

the environment with growing awareness a$out the impli!ations of glo$al warming, non%

$iodegrada$le solid waste, harmful impa!t of pollutants et!., $oth mar#eters and !onsumers are

$e!oming in!reasingly sensitive to the need for swit!h in to green produ!ts and servi!es. 0hile

the shift to /green/ may appear to $e e&pensive in the short term, it will definitely prove to $e

indispensa$le and advantageous, !ost%wise too, in the long run.

GREEN $R*DUCTS AND ITS CHARACTERISTICS

he produ!ts those are manufa!tured through green te!hnology and that !aused no

environmental haards are !alled green produ!ts. Promotion of green te!hnology and green

produ!ts is ne!essary for !onservation of natural resour!es and sustaina$le development. 0e !an

define green produ!ts $y following measures-

Produ!ts those are originally grown,

Produ!ts those are re!y!la$le, reusa$le and $iodegrada$le,

Produ!ts with natural ingredients,

Produ!ts !ontaining re!y!led !ontents, non%to&i! !hemi!al,

Produ!ts !ontents under approved !hemi!al,

Produ!ts that do not harm or pollute the environment,

Produ!ts that will not $e tested on animals,

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Produ!ts that have e!o%friendly pa!#aging i.e. reusa$le, refilla$le !ontainers et!.

CHALLENGES IN GREEN MARKETING

Nee( %or S#an(ar(i0a#ion

It is found that only 12 of the mar#eting messages from 3"reen4 !ampaigns are entirely true and

there is a la!# of standardiation to authenti!ate these !laims. here is no standardiation to

authenti!ate these !laims. here is no standardiation !urrently in pla!e to !ertify a produ!t as

organi!. 5nless some regulatory $odies are involved in providing the !ertifi!ations there will not

$e any verifia$le means. A standard 'uality !ontrol $oard needs to $e in pla!e for su!h la$eling

and li!ensing.

New Conce!#

Indian literate and ur$an !onsumer is getting more aware a$out the merits of "reen produ!ts. 6ut

it is still a new !on!ept for the masses. he !onsumer needs to $e edu!ated and made aware of

the environmental threats. he new green movements need to rea!h the masses and that will ta#e

a lot of time and effort. 6y India7s ayurvedi! heritage, Indian !onsumers do appre!iate the

importan!e of using natural and her$al $eauty produ!ts. Indian !onsumer is e&posed to healthy

living lifestyles su!h as yoga and natural food !onsumption. In those aspe!ts the !onsumer is

already aware and will $e in!lined to a!!ept the green produ!ts.

$a#ience an( $erse/erance

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he investors and !orporate need to view the environment as a ma+or long%term investment

opportunity, the mar#eters need to loo# at the long%term $enefits from this new green movement.

It will re'uire a lot of patien!e and no immediate results. Sin!e it is a new !on!ept and idea, it

will have its own a!!eptan!e period.

A/oi(in- Green M&o!ia

he first rule of green mar#eting is fo!using on !ustomer $enefits i.e. the primary reason why

!onsumers $uy !ertain produ!ts in the first pla!e. Do this right, and motivate !onsumers to

swit!h $rands or even pay a premium for the greener alternative. It is not going to help if a

produ!t is developed whi!h is a$solutely green in various aspe!ts $ut does not pass the !ustomer

satisfa!tion !riteria. his will lead to green myopia. Also if the green produ!ts are pri!ed very

high then again it will lose its mar#et a!!epta$ility.

THE 1*UR $S *1 GREEN MARKETING

8i#e !onventional mar#eters, green mar#eters must address the 9four Ps: in innovative ways.

2 $ro(uc#:

ntrepreneurs wanting to e&ploit emerging green mar#et either-

Identify !ustomers: environmental needs and develop produ!ts to address these needs; or

Develop environmentally responsi$le produ!ts to have less impa!t than !ompetitors.

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he in!reasingly wide varieties of produ!ts on the mar#et that support sustaina$le development

and are good for the triple $ottom line in!lude-

Produ!ts made from re!y!led goods.

Produ!ts that !an $e re!y!led or reused.

ffi!ient produ!ts, whi!h save water, energy or gasoline, save money and redu!e

environmental impa!t.

Produ!ts with environmentally responsi$le pa!#aging. M!Donalds, for e&ample, !hanged

their pa!#aging from polystyrene !lamshells to paper.

Produ!ts with green la$els, as long as they offer su$stantiation.


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for the sa#e of it. Mar#eters loo#ing to su!!essfully introdu!e new green produ!ts should, in

most !ases, position them $roadly in the mar#etpla!e so they are not +ust appealing to a small

green ni!he mar#et. he lo!ation must also $e !onsistent with the image you want to pro+e!t and

allow you to pro+e!t your own image rather than $eing dominated or !ompromised $y the image

of the venue. he lo!ation must differentiate you from your !ompetitors. his !an $e a!hieved $y

in%store promotions and visually appealing displays or using re!y!led materials to emphasie the

environmental and other $enefits.

5 $ro+o#ion:

Promoting produ!ts and servi!es to target mar#ets in!ludes paid advertising, pu$li! relations,

sales promotions, dire!t mar#eting and on%site promotions. Smart green mar#eters will $e a$le to

reinfor!e environmental !redi$ility $y using sustaina$le mar#eting and !ommuni!ations tools

and pra!ti!es. *or e&ample, many !ompanies in the finan!ial industry are providing ele!troni!

statements $y email, e%mar#eting is rapidly repla!ing more traditional mar#eting methods, and

printed materials !an $e produ!ed using re!y!led materials and effi!ient pro!esses, su!h as

waterless printing. etailers, for e&ample, are re!ogniing the value of allian!es with other

!ompanies, environmental groups and resear!h organiations when promoting their

environmental !ommitment. o redu!e the use of plasti! $ags and promote their green

!ommitment, some retailers sell shopping $ags, for e&ample those produ!ed $y 8and !are

Australia,


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employees: green initiatives. nter environmental awards programs to profile environmental

!redentials to !ustomers and sta#eholders.

G*LDEN RULES *1 GREEN MARKETING

>. Know &ou6re Cus#o+er: Ma#e sure that the !onsumer is aware of and !on!erned a$out

the issues that your produ!t attempts to address, (0hirlpool learned the hard way that !onsumers

wouldn7t pay a premium for a


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1. Consi(er our $ricin-: If you7re !harging a premium for your produ!t%and many

environmentally prefera$le produ!ts !ost more due to e!onomies of s!ale and use of higher%

'uality ingredients%ma#e sure those !onsumers !an afford the premium and feel it7s worth it.

. Gi/in- &our cus#o+ers an o!!or#uni#& #o !ar#ici!a#e- means personaliing the $enefits

of your environmentally friendly a!tions, normally through letting the !ustomer ta#e part in

positive environmental a!tion.

E. Thus lea(in- 9ran(s shoul( reco-ni0e #ha# consu+er e;!ec#a#ions ha/e chan-e(: It

is not enough for a !ompany to green its produ!ts; !onsumers e&pe!t the produ!ts that they

pur!hase po!#et friendly and also to help redu!e the environmental impa!t in their own lives too.

GREEN MARKETING < REAS*NS 1*R AD*$TI*N B 1IRMS

"reen mar#eting has $een widely adopted $y the firms worldwide and the following are the

possi$le reasons !ited for this wide adoption-

*!!or#uni#ies ) As demand !hanges, many firms see these !hanges as an opportunity to e&ploit

and have a !ompetitive advantage over firms mar#eting non environmentally responsi$le

alternatives. Some e&amples of firms who have strived to $e!ome more environmentally

responsi$le, in an attempt to $etter satisfy their !onsumer needs are-

M!Donald7s repla!ed its !lam shell pa!#aging with wa&ed paper $e!ause of in!reased

!onsumer !on!ern relating to polystyrene produ!tion and @one depletion.

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una manufa!turers modified their fishing te!hni'ues $e!ause of the in!reased !on!ern

over drift net fishing, and the resulting death of dolphins.

Fero& introdu!ed a /high 'uality/ re!y!led photo!opier paper in an attempt to satisfy the

demands of firms for less environmentally harmful produ!ts.

Go/ern+en# $ressure % As with all mar#eting related a!tivities, governments want to /prote!t/

!onsumer and so!iety; this prote!tion has signifi!ant green mar#eting impli!ations. "overnment

regulations relating to environmental mar#eting are designed to prote!t !onsumers in several

ways,

edu!e produ!tion of harmful goods or $y%produ!ts, Modify !onsumer and industry7s use

andGor !onsumption of harmful goods.

nsure that all types of !onsumers have the a$ility to evaluate the environmental

!omposition of goods. "overnment esta$lishes regulations designed to !ontrol the

amount of haardous wastes produ!ed $y firms.

Co+!e#i#i/e $ressure ) Another ma+or for!e in the environmental mar#eting area has $een

firms7 desire to maintain their !ompetitive position. In many !ases firms o$serve !ompetitors

promoting their environmental $ehaviors and attempt to emulate this $ehavior. In some instan!es

this !ompetitive pressure has !aused an entire industry to modify and thus redu!e its detrimental

environmental $ehavior. *or e&ample when one tuna manufa!ture stopped using driftnets the

others followed suit.

Social Res!onsi9ili#& % Many firms are $eginning to realie that they are mem$ers of the wider

!ommunity and therefore must $ehave in an environmentally responsi$le fashion. his translates

into firms that $elieve they must a!hieve environmental o$+e!tives as well as profit related

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o$+e!tives. his results in environmental issues $eing integrated into the firm7s !orporate !ulture.

here are e&amples of firms adopting $oth strategies.

An e;a+!le of a firm that does not promote its environmental initiative is


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e&ample of this is a firm who produ!es a!idi! waste water as a $y%produ!t of produ!tion and

sells sit to a firm involved in neutraliing $ase materials.

Many !ompanies are adopting green for !apturing mar#et opportunity of green mar#eting some

!ases

E=AM$LE 2 : Bes# Green IT $rojec#: S#a#e Ban, o% In(ia: Green IT>SBI

By using eco and power friendly equipment in its 10,000 new A!s, the ban"ing giant has not

only sa#ed power costs and earned carbon credits, but also set the right e$ample for others to

follow.

S6I is also entered into green servi!e #nown as 3"reen .1 M0. he wind farm is spread a!ross three

states J amil adu, with C.1 M0 of wind !apa!ity; Maharashtra, with K M0; and "u+arat, with

>.1M0. he wind pro+e!t is the first step in the State 6an# of India7s green $an#ing program

dedi!ated to the redu!tion of its !ar$on footprint and promotion of energy effi!ient pro!esses,

espe!ially among the $an#7s !lients.

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E=AM$LE 3: Lea( 1ree $ain#s %ro+ Kansai Nerolac

Lansai erola! Paints 8td. has always $een !ommitted to the welfare of so!iety and environment

and as a responsi$le !orporate has always ta#en initiatives in the areas of health, edu!ation,

!ommunity development and environment preservation.Lansai erola! has wor#ed on removing

haardous heavy metals from their paints. he haardous heavy metals li#e lead, mer!ury,

!hromium, arseni! and antimony !an have adverse effe!ts on humans. 8ead in paints espe!ially

poses danger to human health where it !an !ause damage to


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0ipro !an do for you in your 'uest for a sustaina$le tomorrow% redu!e !osts, redu!e your !ar$on

footprints and $e!ome more effi!ient % all while saving the environment.

'i!ro6s Green Machines ?In In(ia *nl&8

0ipro Infote!h was India7s first !ompany to laun!h environment friendly !omputer peripherals.

*or the Indian mar#et, 0ipro has laun!hed a new range of des#tops and

laptops !alled 0ipro "reenware. hese produ!ts are oS(estri!tion of aardous Su$stan!es)

!ompliant thus redu!ing e%waste in the environment.

E=AM$LE @: Goin- Green: Ta#a6s new +an#ra

he ideal glo$al $en!hmar# though is >.1. ata Motors is setting up an e!o%friendly showroom

using natural $uilding material for its flooring and energy effi!ient lights. ata

Motors said the pro+e!t is at a preliminary stage. he Indian otels


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@rganiations are Per!eive nvironmental mar#eting as an @pportunity to a!hieve its o$+e!tives.

*irms have realied that !onsumers prefer produ!ts that do not harm the natural environment as

also the human health. *irms mar#eting su!h green produ!ts are preferred over the others not

doing so and thus develop a !ompetitive advantage, simultaneously meeting their $usiness

o$+e!tives. @rganiations $elieve they have a moral o$ligation to $e more so!ially responsi$le.

his is in #eeping with the philosophy of


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du!ate !onsumers with mar#eting messages that !onne!t environmental attri$utes with

desired !onsumer value.

*rame environmental produ!t attri$utes as 3solutions4 for !onsumer needs.


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and environmentally harmless manner should $e!ome mu!h more systematied and universal. It

has to $e!ome the general norm to use energy%effi!ient lamps and other ele!tri!al goods.

Mar#eters also have the responsi$ility to ma#e the !onsumers understand the need for and

$enefits of green produ!ts as !ompared to non%green ones. In green mar#eting, !onsumers are

willing to pay more to maintain a !leaner and greener environment. *inally, !onsumers,

industrial $uyers and suppliers need to pressurie effe!ts on minimie the negative effe!ts on the

environment%friendly. "reen mar#eting assumes even more importan!e and relevan!e in

developing !ountries li#e India.

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RE1ERENCES

>.


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1. Srivastava S and Srivastava , 3Adoption of "reen Information e!hnology ("I) in India%A

, ?>?.

ISBN: 978-93-84898-74-8

green marketing issues and challenges

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